Ratings agency Fitch has warned China’s credit bubble is now unprecedented…. » Fitch says China credit bubble unprecedented in modern world history – The Telegraph, 16th June 2013. » China’s credit bubble is unprecedented: Fitch – The Sydney Morning Herald, 18th June 2013.
Last Monday, we briefly reported on new regulations being introduced by the Chinese Government to help curb rampant property speculation and help put a lid on China’s property bubble. The shock move created jitters in world stock markets, including wiping approximately $21 billion from Australia’s resource lead bourse. The Chinese …
1.5 per cent was wiped off the value of Australian stocks today, in part on the news the Chinese government is tightening regulations to help contain China’s Housing Bubble. The Shanghai Composite fell 3.6 per cent dragged down by some construction stocks falling as much as 10 per cent. Australia …
S&P has reaffirmed Australia’s AAA credit rating for now, but has warned a number of vulnerabilities exist. One vulnerability is a housing correction due to the “substantial [household] debt mainly due to elevated property prices” in Australia. The report indicated “The sustainability of high household debt levels has not been …
Wednesday’s decision by BHP Billiton to delay the Olympic Dam expansion could herald the end to Australia’s mining investment boom and commodities super-cycle. Debate about when or if the boom had peaked started earlier this month when a report from Deloitte Access Economics had forecast a peak for resource sector …
Measures by China’s central government to cool its once bubbling property market is continuing to yield results with figures from the National Bureau of Statistics (NBS) showing a 17.5 percent drop in the number of home sales in the first quarter this year. According to the bureau, new house prices …
In a report released yesterday by Standards & Poor’s, it predicted Australian House Prices could fall by more than 5 percent in 2012 should China experience a soft landing with a GDP growth rate of 8 percent. Earlier this week China’s Premier Wen Jiabao announced his government would target a …
It was December 2008. Three months earlier Lehman Brothers had collapsed – credit markets have frozen over. Two months earlier, Prime Minister Kevin Rudd announces the First Home Owners’ Boost, designed to save the housing market, or at least temporary, by encouraging first home buyers to bring forward their purchases …
With the European debt crisis effecting consumer confidence around the globe, HSBC’s China Purchasing Managers’ Index (PMI) dropped to 47.7, a little bit weaker than last weeks preliminary flash figure. Values below 50 indicates the conditions are contracting and deteriorating. Today’s figure comes in at a 32 month low. The …
The last month have seen some large and dramatic changes in China’s property market. A wave of real estate agency closures in Beijing and Shenzhen and falling prices has many Chinese believing the real estate market has reached all time highs and is now finally correcting. Recent weeks have seen …
Over the past 18 months we have reported on numerous attempts by the Chinese Central Government to try to cool their overheating property market, using measures such as restricting citizens from purchasing multiple homes, increasing interest rates and increasing bank reserve ratios. In the past two months, these measures have …
According to data from the People’s Bank of China (PBOC) and published by the China Daily, new property related loans including loans provided to property developers and new home buyers fell to 992.3 billion yuan between January and September, down 42.8 percent compared to the same time the year earlier. …
Zhang Zhiwei, chief China economist at Nomura Holdings Inc has told Bloomberg, China’s property market may be reaching “Tipping Point”. The China central government has been trying to cool rampant speculation in the property for some time. According to data from the government, prices of new homes declined in 16 …
Last month we wrote about signs that China’s construction bubble could be on the verge of bursting. There were concerns of large and mounting debts held by LGFV (Local Government Finance Vehicles) for empty office towers, residential real estate and other non performing infrastructure investments. Two days after we wrote …
The second bailout of Greece has been in the lime light for the past couple of weeks. While Fitch rating’s Andrew Colquhoun said today that Australian and Korean Banks are the most exposed in Asia to the European debt crisis thanks to our dependence on offshore borrowing, is there another …
Last month we reported statistics from real estate adviser DTZ showing house sales in Chinese first tier cities plunged 64.6 percent in the month of February. Such a sizeable fall was expected to have an impact on prices. Business China has now reported the prices of new homes in Beijing …
The China Daily has reported comments from Yang Hongxu, a senior researcher at E-House China Research and Development Institute in Shanghai saying he believes China’s House Price Index, based on the 70 major cities, will show a decline in prices before May, following evidence of a slowdown in February’s data. …
According to Forensic Asia Ltd.’s managing director Gillem Tulloch, the China property bubble will likely burst next year. Tulloch believes china’s banks are unable to pump out enough credit to sustain further rises in property values. He says the Chinese economy will be short 11 trillion yuan in credit required …
The Sydney Morning Herald has today reported some banks in China have raised interest rates on property loans by as much as 10 to 45% after a surge in credit growth this month. New loans issued to the 24 of January exceeded twice the amount that was loaned in December. …
According to the China Daily, China’s Central Government plans to strengthen policy in 2011 designed to cool the property bubble in China. The announcement came a day after China’s Central bank increased the one year benchmark lending rate by 25 basis points to 5.81 percent in a further bid to …
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